US stocks diverged Tuesday as a deepening rout in semiconductor stocks dragged the Nasdaq 100 lower while defensive sectors lifted the S&P 500 to a modest gain.
返回
Philadelphia Semiconductor Index drops 4.4% as AI spending fears mount
The Philadelphia Semiconductor Index tumbled 4.4% and the memory chip index plunged 9.1%, extending a selloff driven by worries over AI infrastructure spending and rising competition from China.
"Greed has turned into fear for AI-related semiconductor stocks. Investors are now interpreting every piece of news negatively and using it as an excuse to sell, rather than critically analyzing the true fundamental impact," said Vey-Sern Ling, a market strategist at Union Bancaire Privee.
The S&P 500 added 0.2%, buoyed by healthcare and consumer staples, which gained 2.4% and 2%, respectively, as investors rotated into defensive names. The Nasdaq 100 fell 1%. Among the hardest-hit chip stocks, SanDisk tumbled 13.8%, Seagate Technology dropped 9.1%, and Micron Technology and Arm Holdings each lost about 8%. ASML Holding's US-listed shares slid 3.6%. The Dow Jones Industrial Average rose 0.74%, or 384 points, supported by Johnson & Johnson's 2.5% gain after the drugmaker agreed to a $5.5 billion talc settlement.
The selloff raises the stakes for Big Tech earnings later this week, with Microsoft, Amazon, Meta Platforms, and Apple all reporting. Investors will scrutinize whether their combined hundreds of billions in AI capital expenditure are generating returns. The Federal Reserve concludes its two-day meeting Wednesday, with traders pricing a 36.9% probability of a rate cut, according to LSEG data, though the central bank is widely expected to hold rates at 3.5% to 3.75%.
Korea's KOSPI Rout Spills Into US Markets
The selloff in US chip stocks followed a brutal session in South Korea, where the KOSPI dropped more than 10% — its worst monthly performance in over three decades, according to Jefferies. Samsung Electronics tumbled 13%, while SK Hynix's Korea-listed shares plunged nearly 15%, driven by margin calls on leveraged positions. SK Hynix's US-listed ADRs fell 9%.
The weakness in memory chipmakers reflects growing unease about the AI spending cycle. Roundhill's Memory Exchange Traded Fund lost 6.5% Tuesday and has traded below its 50-day moving average for two weeks, indicating weak short-term momentum. The Philadelphia Semiconductor Index has now fallen over 20% from its all-time high set in June.
Cross-Asset Moves: Bonds, Oil, and the Dollar
The yield on the benchmark 10-year US Treasury note fell to 4.62%, down 0.77%, as investors sought safe-haven assets. Oil prices declined 2.6% to a one-week low as a fragile US-Iran ceasefire held despite drone attack reports. The Conference Board's consumer confidence index for July, due later Tuesday, is expected to show a reading of 92.4, up from 91.2 in June.
Economic data Monday showed US durable goods orders rose 0.3% month over month in June, well below the 1.6% consensus estimate, while core durable goods orders — excluding transportation — increased 0.6%, also missing expectations of 0.9%.
This article is for informational purposes only and does not constitute investment advice.
[1] US stock memory chip index initially closed down 9.1%, Philadelphia Semiconductor Index down about 4.4[2] Nasdaq futures drop on AI chip worries ahead of pivotal earnings[3] Wall Street faces potential volatility as key economic reports approach: Dow Jones, S&P, Nasdaq, futures[4] US chipmakers are getting crushed by a familiar source: AI jitters in Asia[5] Nasdaq Futures Plunge as Chip Selloff Rages On, FOMC Meeting and Earnings on Tap
